Announcements

Northern 2 VCT PLC.

24 JUNE 2014

NORTHERN 2 VCT PLC

ANNUAL REPORT AND FINANCIAL STATEMENTS AND NOTICE OF 2014 ANNUAL GENERAL MEETING

Copies of the annual report and financial statements of Northern 2 VCT PLC ("the Company") for the year ended 31 March 2014 ("the Annual Report") and a circular to shareholders including the notice of the 2014 Annual General Meeting to be held on 30 July 2014 ("the Circular") have been submitted to the National Storage Mechanism and will shortly be available for inspection at www.morningstar.co.uk/uk/NSM.

Copies of the Annual Report and the Circular are also available on the NVM Private Equity website at http://www.nvm.co.uk/n2vctagm2014.

AMENDMENT TO THE MANAGEMENT AGREEMENT

The Independent Directors (being the Board of Directors excluding Mr A M Conn) have recently undertaken a review of the management fees payable to NVM Private Equity Limited ("the Manager") under the terms of the amended and restated management and administration agreement dated 13 May 2014 made between the Company and the Manager ("the Management Agreement"), and have concluded that the performance-related fee payable to the Manager should be varied to increase the hurdle rate with effect from 1 April 2014. The proposed variation will result in the application of a higher hurdle rate to cash and near-cash investments and, in recognition of the resulting increase in this hurdle rate, increasing the performance-related fee.  The performance-related fee cap of 2.25% of opening NAV remains unchanged.

Further details of the proposed changes to the Management Agreement are set out in the Circular.

The Independent Directors believe that the amended formula represents a more appropriate balance between hurdle and reward, whilst tending to reduce the performance-related fee in a financial year when the level of cash and near-cash investments is relatively high, as may (for example) be the case following the receipt of proceeds from public share offers or significant investment disposals.

The proposed changes to the Management Agreement are being submitted for consideration and approval by Shareholders as a matter of good practice, although Shareholder approval is not formally required by the relevant legislation, regulations and the Listing Rules, as it is a related party transaction falling within Listing Rule 11.1.10.

Enquiries:

Alastair Conn/Christopher Mellor, NVM Private Equity Limited - 0191 244 6000
Website:  www.nvm.co.uk

Neither the contents of the NVM Private Equity Limited website nor the contents of any website accessible from hyperlinks on the NVM Private Equity Limited website (or any other website) is incorporated into, or forms part of, this announcement.




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The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Northern 2 VCT PLC via Globenewswire

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